The price of bitcoin is now hovering around $20,000 and has not changed significantly over the past few days. The resistance level at $20,600 is proving to be a barrier to the price, which has already been rejected in shorter time frames. In the ensuing hours, it is expected that the price will find it difficult to rise over this mark, and Bitcoin’s downward trend might continue.
Following a recent breakout from another range-bound trend on August 26, the price of bitcoin is currently exhibiting tight congestion. The most traded volume level since 2022, BTC is already below the point of control (POC) at $21,535.
If buyers do not enter the market due to the current scenario in the cryptocurrency markets, another leg down will occur, pushing the price of Bitcoin to the range low of $17,585. Investor purchasing pressure from those trying to acquire BTC at a reduced price may be able to halt this 12% decline.
This is more likely to happen soon than later from an on-chain standpoint. According to IntoTheBlock’s Global In/Out of the Money (GIOM) model, the resistance cluster at $23,629 is stronger than the immediate support level at $18,925.
The cluster comprises 2.73 million BTC that were bought by around 4.41 million addresses, whereas the former cluster only contains 673,210 addresses holding 421,840 BTC. According to this perspective, a downturn is more likely to happen, especially if selling pressure suddenly increases.
The coin has spent the entire week trading in a range between $20,500 and the support at $19,575, and it must break this range in order to determine the market’s future course. Almost 300 days have passed since the beginning of the current Bitcoin downturn, and BTC is currently down 70% from its all-time high levels. Unfortunately, it appears that there may yet be more suffering to come.
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